How the Palisades Fires Changed My Perspective on Commercial Real Estate Risks

I used to think about real estate risk in terms of numbers. Vacancy rates, rental trends, cap rates. But after the Palisades Fires, my whole way of thinking changed. Seeing entire neighborhoods at risk was an eye-opener in that it was so obvious that risk is also physical, tangible, and sometimes life-altering. It's not just about buildings; it's about where we construct and whether or not those locations are actually prepared for real threats like wildfires.

Ever since, I've been paying closer attention to topics like insurance, fire zones, and materials. Land that was previously deemed prime is now harder to insure. And honestly, if you're building in California, fire-resistant materials shouldn't be on the menu, they should be required. You can already see the trend realized in stories regarding California homeowners insurance crisis and how communities are rethinking wildfire risk. These are all concerns real estate agents need to take very seriously these days, especially in high-risk zones.

The aftermath of the Palisades Fires: a burned landscape serves as a reminder of the risk commercial properties face.

Real estate isn't just about making money, it's about keeping people safe and constructing communities that will endure. Wildfires may be a part of California's future, so we must begin planning with that reality already in mind. I would like to be a part of developing places that are not only livable, but built to last.